FSS and KFB launch hotline for Iranians having difficulties with financial transactions

Hotline in response to banks closing accounts of Iranians residing in S. Korea

On Nov. 22, the Financial Supervisory Service (FSS) and the Korea Federation of Banks (KFB) launched a hotline for Iranian nationals who are suffering difficulties with financial transactions in South Korea. This measure was taken to response to South Korean banks that have been closing the accounts of Iranians living in the country or tightening the requirements for them to open accounts.

On the afternoon of Nov. 21, South Korea’s Ministry of Foreign Affairs and the Financial Services Commission (FSC) announced that they would be running a hotline dedicated to fielding inquiries from Iranian residents of South Korea about financial difficulties and resolving those difficulties. When Iranians previously submitted complaints about financial transactions to the Iranian embassy to South Korea, the FSC and the KFB had worked with various banks to provide explanations and solutions on a case-by-case basis.

The South Korean government was driven to set up a dedicated hotline for Iranians because of strong pushback from the Iranian government and embassy about what they describe as intolerable treatment in the country. In response, officials from the Foreign Ministry visited Iran at the beginning of November, and the Foreign Ministry organized a seminar for Iranian students on Nov. 9 to explain the situation and ask for their understanding. South Korea and Iran’s trade last year amounted to about US$12 billion, making Iran South Korea’s 20th biggest trading partner.

Along with reassuring the Iranian government and Iranian nationals living in the country, the South Korean government has been asking for cooperation from domestic banks while explaining that Iranian civilians are not restricted from using routine financial services.

Government says it cannot compel private-sector banks to open accounts

But the government says it cannot compel private-sector banks to open accounts if they are reluctant to do so in the interests of risk management. A number of banks have been tightening their screening, and KEB Hana Bank has even asked Iranians living in the country to close their accounts.

“We’ve asked the US Treasury Department for a clear interpretation about providing financial services to Iranian nationals,” an official with the FSC said.

There are around 1,500 Iranians living in South Korea, and the financial authorities estimate that they have over 1,300 active accounts.

An Iranian living in the country whose Nonghyup Bank account and credit card were frozen at the beginning of this month told the Hankyoreh about their experience on Nov. 21. “When my account was frozen, the transit card function on my credit card stopped working as well. I haven’t had any luck opening an account at other banks to receive my salary.”

“I was using three accounts at KEB Hana Bank that I opened eight years ago, and I had to close them because of the bank’s inhumane measures. Even if the secondary boycott and other sanctions are lifted in the future, I’m never going to use KEB again,” said another Iranian who is a research professor at a university in Seoul.

The National Human Rights Commission of Korea is currently investigating KEB Hana Bank’s closure of the accounts of its Iranian customers, which it regards as discrimination based on the country of one’s birth.

The hotlines for Iranian residents of Korea who are dealing with financial difficulties are as follows: Financial Supervisory Service: 02-3145-7064 (commercial banks),

02-3145-7206 (regional/special-purpose banks); Korea Federation of Banks: 02-3705-5332. The hotlines are open weekdays from 9 am to 6 pm.

By Park Su-ji, staff reporter

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